{"id":323442,"date":"2023-05-31T00:25:07","date_gmt":"2023-05-30T16:25:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323442"},"modified":"2023-05-31T00:25:08","modified_gmt":"2023-05-30T16:25:08","slug":"us-debt-ceiling-2023","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/us-debt-ceiling-2023\/","title":{"rendered":"Details of Republicans&#8217; and Democrats&#8217; deal on raising the U.S. debt ceiling"},"content":{"rendered":"\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>US President Joe Biden and House Speaker Kevin McCarthy announced separately that they have reached a deal to raise the country\u2019s debt ceiling and avoid a catastrophic default for the world\u2019s largest economy. Treasury Secretary Janet Yellen has earlier extended the X-date, or the date when the government would run out of funds to pay for its obligations, from June 1 to June 5.<\/p>\n\n\n\n<p>McCarthy pledged to have the legislative package drafted and put forward in the House as early as Wednesday (May 31), and assuming that it will take the usual time of three days to run the gauntlet of ratifications from Congress all the way up to the President\u2019s desk, the legislation should come into effect just in time for the June 5 X date. It is now up to the leaders of both parties to gather support for the bill, particularly from members of their respective far left and right.<\/p>\n\n\n\n<p>The compromise deal would essentially hold spending flat for 2024, while boosting it for defense and veterans, and capping increases at 1% for 2025. It also effectively raises the debt limit for two years, pushing the volatile political issue past the next presidential election. <\/p>\n\n\n\n<p>Republicans achieved some of what they wanted, with tougher work requirements for recipients of government aid. It ensures people ages 49 to 54 with food stamp aid would have to meet work requirements if they are able-bodied and without dependents. <\/p>\n\n\n\n<p>The Democrats, on the other hand, was able to secure waivers for veterans and homeless people. The deal puts in place changes in the landmark National Environmental Policy Act designating \u201ca single lead agency\u201d to develop environmental reviews, in hopes of streamlining the process. It also effectively freezes hiring for new Internal Revenue Service agents as Republicans demanded, and rescinds some $30 billion for coronavirus relief, keeping $5 billion for developing the next generation of COVID-19 vaccines.<\/p>\n\n\n\n<p>Speaker McCarthy told Republicans privately that Democrats \u201cgot nothing\u201d they wanted, while Biden told his party that the Democrats got exactly what they wanted which was to avert the worst possible crisis of a U.S. default. <\/p>\n\n\n\n<p>Markets, on the other hand, can breathe a sigh of relief. Japanese equities jumped 2% when it opened Monday, while U.S. futures also trended higher. <\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-323442","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=323442"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323442\/revisions"}],"predecessor-version":[{"id":323444,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323442\/revisions\/323444"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=323442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=323442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=323442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}